Q1 2009 Earning Report of Cit Group, Inc.

FOR IMMEDIATE RELEASE

CIT REPORTS FIRST QUARTER RESULTS;
PROGRESS EXECUTING BANK STRATEGY

• First quarter loss of $1.30 per share
• Results impacted by high credit costs, including reserve build, and margin
compression
• Estimated Total Capital Ratio of 13.0%
• Initial phase of 23A asset transfers into CIT Bank completed

NEW YORK – April 23, 2009 – CIT Group Inc. (NYSE: CIT), a bank holding company,
today reported a loss of $438.1 million ($504.5 million after preferred dividends), $1.30 per share,
for the first quarter of 2009, compared to a loss of $240.7 million ($259.2 million after preferred
dividends), $1.36 per share from continuing operations for the comparable 2008 quarter. CIT also
reported progress in implementing its bank strategy by receiving regulatory approval to commence
the transfer of assets into CIT Bank, a wholly-owned subsidiary.

“Our results this quarter reflect the ongoing stress in the economy,” said Jeffrey M. Peek,
Chairman and CEO. “The current economic conditions significantly pressured certain segments of
the middle market while tightness in the credit markets has resulted in higher borrowing costs and
compressed margins. These factors, in conjunction with our commitment to maintaining a strong
balance sheet, led to our decisions to increase loan loss reserves and suspend our common dividend.

“We are making progress implementing our bank strategy, which is focused on stabilizing
our long-term funding model as we manage expenses and maintain adequate liquidity. CIT Bank
raised more than $700 million of deposits in the quarter and we recently transferred $5.7 billion of
assets into the bank through our initial 23A waiver from the Federal Reserve. As we look ahead, we
believe our commercial franchises are well poised to capture opportunities when the market
improves.”

Bank Holding Company (BHC) Update

• Our estimated March 31, 2009 Tier 1 and Total Capital Ratios were 9.3% and 13.0% on a
consolidated basis.
• During the quarter we actively managed down risk-weighted assets to an estimated $75
billion from $79 billion at December 31, 2008.
• In April, the Federal Reserve approved the initial phase of our 23A waiver and we transferred
$5.7 billion of government-guaranteed student loans and $3.5 billion of related debt to CIT
Bank. We are working with the regulators to obtain permission to transfer additional assets
under our waiver request.

1

• Our bank strategy involves the transfer of certain U.S. operations, including originations and
servicing platforms, into CIT Bank and the transition to a more diverse and deposit-based
funding model.
• CIT Bank increased its cash balances to $1.6 billion through increased deposit gathering
activities, a portion of which was used in April to pay CIT Group amounts arising from the
23A student loan transfers. Deposits raised in the first quarter were in excess of $700 million.
• At March 31, 2009, assets at CIT Bank totaled $3.9 billion, including $1.7 billion of
commercial loan receivables originated at the bank, and deposits were $3.0 billion. It is
anticipated that further increases in existing deposit raising activities will be pursued,
coupled with further diversification of bank-level funding sources.
• New business volume for the quarter was $2.4 billion, and factoring volume was $8.3 billion.
• Our application for participation in the Temporary Liquidity Guaranty Program (TLGP)
remains outstanding.

Consolidated Financial Highlights of Continuing Operations

Our operating results for the quarter reflect the weak economic environment as charge-offs
and problem loans rose and we increased the allowance for loan losses. Interest margins compressed
primarily due to higher cost of secured borrowings. We recorded a pretax gain of approximately
$139 million on the repurchase of $471 million of unsecured debt at a discount. Operating expenses
decreased from last quarter, benefitting from prior restructuring initiatives. From a segment
perspective, Transportation Finance and Trade Finance were profitable, while Vendor Finance and
Corporate Finance are being hit hardest by the economic and credit downturn and liquidity
constraints.

Net Finance Revenue (net interest revenue plus rental income less depreciation on operating leases)
• Interest income decreased 22% from last quarter reflecting the repricing of certain assets at
lower market index rates, lower earning asset levels and higher levels of non-accrual assets.
• Interest expense decreased 17% from last quarter as the benefit of lower debt balances and
lower market rates was partially offset by higher funding costs associated with secured
borrowings.
• Rental income on operating lease equipment was up slightly, primarily related to higher
aerospace assets.
• Net margin (net finance revenue as a percentage of average earning assets) was 1.13%, down
from 1.38% last quarter, as the effect of higher funding costs, higher nonaccruals and asset
repricings offset the benefit of reduced leverage.
• Operating lease net revenue was 6.00% of average operating leases, essentially flat with last
quarter. Asset utilization remained strong in aerospace, while there was some weakening in
rail.

Other Income (excluding rental income)
• Other income generation remained challenging in light of current market conditions.
• Fees and commissions were down from last quarter reflecting lower deal activity, coupled
with impairment charges on certain retained interests.
• Factoring commissions declined from last quarter as an increase in rates was more than offset
by lower volumes.

2

• Commercial loan sales and syndication volume and the respective gains and fees were down
from last quarter consistent with market conditions.
• Equipment gains were down on fewer aircraft sales.

Credit Quality – Commercial
• Net charge-offs as a percentage of average finance receivables were 2.78%, up from 1.42%
last quarter. This increase was attributable to higher severity and defaults concentrated in the
media, energy and commercial real estate sectors of the Corporate Finance portfolio. Charge-
offs declined sequentially in both Vendor Finance and Trade Finance.
• Non-accrual loans for the commercial businesses were 3.88% of finance receivables at
March 31, 2009, up from 3.00% at December 31, 2008, driven primarily by Corporate
Finance, principally in the sectors noted above.
• Credit reserves for the commercial segments increased by $217 million to $1.1 billion at
March 31, 2009. Credit reserves as a percentage of finance receivables increased to 2.77%
from 2.11% last quarter.

Credit Quality – Consumer Segment
• Net charge-offs were $37 million, including $21 million of charge-offs in the private student
loan portfolio, up from $31 million last quarter.
• Non-accrual loans were $191 million, down slightly from $194 million at December 31,
2008 and primarily reflect losses in the private student loan portfolio.
• The provision for credit losses totaled $40 million for the quarter, and the related allowance
for loan losses increased to $242 million.

Salaries and General Operating Expenses
• Salaries and general operating expenses in the quarter were $282 million before severance
and facility exit costs, down from last quarter’s comparable amount. The current period
includes incremental bank holding company (BHC) costs of $3 million. Expenses in the
prior quarter were $353 million, which included $31 million of BHC costs and $33 million
related to certain reconciliation charges, and $304 million in the prior year first quarter. The
improvement primarily reflects lower compensation costs, consistent with lower headcount,
and reduced discretionary spending.
• During the quarter we recorded a work force reduction and facility closing charge of $20
million pre-tax, primarily reflecting the elimination of approximately 140 employees (3% of
the workforce) and exit from four facilities. Annual savings from these actions are estimated
to be $16 million.
• Employee headcount totaled approximately 4,830 at March 31, 2009, down from 4,995 at
December 31, 2008.

Income Tax Provision
• The tax provision for the quarter was driven primarily by earnings in international operations.
No tax benefit was provided on the pre-tax loss from U.S. operations due to the Company’s
net operating loss position.

3

Assets
• Total assets at March 31, 2009 were $75.7 billion, down from $80.4 billion at December 31,
2008. Total owned and securitized financial assets were $65.8 billion, lower than last quarter.
• Estimated risk weighted assets, which include both on-balance sheet and off-balance sheet
assets and unfunded commitments in accordance with Basel I requirements, were
approximately $75 billion, down from $79 billion at December 31, 2008.
• We ended the quarter with $6.0 billion of cash, down from $8.4 billion at December 31,
2008, as we repaid over $3 billion of unsecured debt that matured in the quarter.
• New loan originations in our commercial businesses, excluding factoring, was $2.4 billion
for the quarter, down from $3.3 billion last quarter and $5.1 billion for the March 31, 2008
quarter, and reflects seasonality, weak market conditions and balancing of liquidity.

Capital
• Total capital at March 31, 2009 was $9.8 billion, compared to $10.4 billion at December 31,
2008.
• Our estimated consolidated Tier 1 and Total Capital Ratios were 9.3% and 13.0% at March
31, 2009, compared to 9.4% and 13.1%, respectively, at December 31, 2008.
• Tangible common equity as a percentage of tangible assets (TCE ratio) was 5.2%, down from
5.6% at December 31, 2008.
• The Company has elected to suspend the dividend to common shareholders.
• Average common shares outstanding for the 2009 first quarter increased to 389 million from
295 million last quarter, reflecting the full impact of common equity issued in December.
• Earnings per share and other per share calculations do not include the potential dilutive
effects of the warrant to purchase approximately 88.7 million shares of common stock at an
initial exercise price of $3.94 issued in conjunction with the TARP funding, outstanding
convertible preferred stock (convertible into 45.5 million common shares) and other
potentially dilutive securities.

Segment Results:

Corporate Finance
• Results this quarter include substantially higher credit costs reflecting the impact of the weak
economy, as well as the continued dislocation in capital markets that has negatively impacted
our ability to originate new business and generate fees.
• Total net revenues (the sum of net interest revenue, total other income and depreciation on
operating lease equipment) remained weak during the quarter. Interest income was down
from last quarter on lower asset balances coupled with a higher level of non-accrual loans.
Net finance revenue (the sum of net interest revenue, rental income and depreciation on
operating lease equipment) as a percentage of average earning assets decreased from the
previous quarter. Interest expense, while down from last quarter on the lower asset levels,
reflects the higher funding costs associated with secured financing.
• Fees and other income were down as there were low levels of market activity. The current
quarter also included $17 million of impairment charges on retained interests, while last
quarter included approximately $61 million of impairment charges on real estate assets.
• New business volume was $0.3 billion for the quarter, down 59% from last quarter.

4

• Credit metrics, including net charge-offs and non-accrual loans, weakened materially this
quarter. This weakening was primarily attributable to both higher severity and more rapid
realization of losses as current markets provide companies with fewer workout options and
have led to a substantially higher level of bankruptcies and liquidations. This deterioration
was particularly notable in the media, energy, and commercial real estate sectors.

Transportation Finance
• Results this quarter reflect continued good performance in aerospace, some softening in rail
and continued strong credit quality.
• Total net revenues were down from last quarter on lower asset sales. Our commercial aircraft
portfolio was fully leased at March 31, 2009, while rail utilization declined from year-end to
93%.
• Net finance revenue as a percentage of average earning assets was up from last quarter.
• Volume was down from last quarter, primarily due to fewer rail car purchases. We took
delivery of and placed 7 commercial aircraft from our order book.
• Credit quality remained strong; charge-offs were low and the level of non-accrual loans
declined from December 31, 2008.

Trade Finance
• Results this quarter reflected modestly higher credit costs, lower factoring volumes and
improved commission rates.
• Total net revenues were down from last quarter as an increase in factoring commission rates
was more than offset by lower factoring volumes, reflecting seasonality and a weak retail
environment.
• Net finance revenue as a percentage of average earning assets declined from last quarter
reflecting higher funding costs.
• Factoring volumes were $8.3 billion, compared to $10.4 billion last quarter.
• Credit metrics were generally stable. While net charge-offs were down slightly from last
quarter, non-accrual loans increased.

Vendor Finance
• Results this quarter were impacted primarily by higher credit provisions.
• Total net revenues were down from last quarter as a result of increased amortization of
origination costs.
• Net finance revenue as a percentage of average earning assets was flat with last quarter.
• New business volume was $1.4 billion versus $1.8 billion last quarter as we managed the
level of originations.
• The provision for credit losses rose from last quarter as non-accrual loans increased;
however, net charge-offs were below the prior quarter.

Consumer
• Total net revenues were down from last quarter primarily reflecting assets that repriced at
lower rates and lower asset levels, as we no longer originate student loans.
• Net charge-offs increased from last quarter on deterioration in the private student loan
portfolio and reserves for credit losses were increased by $3 million.

5

• Our student loan portfolio decreased by $201 million during the quarter to $12.0 billion, of
which $11.3 billion are U.S. government-guaranteed loans.
• The transfer of student loans to CIT Bank should result in a lower funding cost and has no
impact on our ability to service these assets.

Corporate and Other
• The current quarter includes the pre-tax gain of $139 million (net of costs to unwind related
hedges) from the repurchase of $471 million of senior unsecured notes and a charge of $20
million pre-tax, primarily reflecting the elimination of approximately 140 employees. Both of
these amounts are included in other expenses on the face of the income statement.
• The Corporate and other segment results also include $49.2 million of preferred stock
dividends, up from last quarter reflecting the additional dividends on the TARP investment
received in December and $16.7 million of TARP preferred stock discount accretion that is
recorded directly to accumulated deficit.
• The segments record tax expense or benefit as if they were reporting on a stand alone basis.
The corporate and other results include tax expense of $188.8 million to offset the income tax
benefit reported by the segments. The adjustment reflects the Company’s net operating loss
position.

Discontinued Operation (Home Lending)

• We concluded our exit from this business in the first quarter with the transfer of servicing
operations and receipt of the final payment of approximately $45 million.

6

Conference Call and Webcast:
We will discuss this quarter’s results, as well as ongoing strategy, on a conference call and
audio webcast today at 9:00 am (EDT). Interested parties may access the conference call live today
by dialing 866-831-6272 for U.S. and Canadian callers or 617-213-8859 for international callers, and
reference access code “CIT Group” or access the audio webcast at the following website:
http://ir.cit.com. An audio replay of the call will be available beginning shortly after the conclusion
of the call until 11:59 pm (EDT) May 6, 2009, by dialing 888-286-8010 for U.S. and Canadian
callers or 617-801-6888 for international callers with the access code 26931287, or at the following
website: http://ir.cit.com.

About CIT:
CIT (NYSE: CIT) is a bank holding company with more than $60 billion in financing and
leasing assets that provides financial products and advisory services to small and middle market
businesses. Operating in more than 50 countries across 30 industries, CIT provides an
unparalleled combination of relationship, intellectual and financial capital to its customers
worldwide. CIT maintains leadership positions in aerospace, equipment and rail leasing, small
business and middle market lending, vendor financing and factoring. Founded in 1908 and
headquartered in New York City, CIT is a member of the S&P 500 and Fortune 500. www.cit.com.

7

Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of applicable
federal securities laws, including the Private Securities Litigation Reform Act of 1995, that are based
upon our current expectations and assumptions concerning future events, which are subject to a
number of risks and uncertainties that could cause actual results to differ materially from those
anticipated. The words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,”
“plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,”
“commence,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the
negative of any of those words or similar expressions is intended to identify forward-looking
statements. All statements contained in this press release, other than statements of historical fact,
including without limitation, statements about our plans, strategies, prospects and expectations
regarding future events and our financial performance, are forward-looking statements that involve
certain risks and uncertainties. While these statements represent our current judgment on what the
future may hold, and we believe these judgments are reasonable, these statements are not guarantees
of any events or financial results, and our actual results may differ materially due to numerous
important factors that are described in Item 1A of our Annual Report on Form 10-K for the year
ended December 31, 2008, and our Current Reports on Form 8-K. Many of these risks, uncertainties
and assumptions are beyond our control, and may cause our actual results and performance to differ
materially from our expectations. Important factors that could cause our actual results to be
materially different from our expectations include, among others, capital markets liquidity; risks of
and/or actual economic slowdown, downturn or recession; industry cycles and trends; demographic
trends; risks inherent in changes in market interest rates and quality spreads; funding opportunities
and borrowing costs; conditions and/or changes in funding markets, including commercial paper,
term debt and the asset-backed securitization markets; uncertainties associated with risk
management, including credit, prepayment, asset/liability, interest rate and currency risks; adequacy
of reserves for credit losses; risks associated with the value and recoverability of leased equipment
and lease residual values; application of fair value accounting in volatile markets; changes in laws or
regulations governing our business and operations; changes in competitive factors; future
acquisitions and dispositions of businesses or asset portfolios; the risks associated with our being a
bank holding company, including, but not limited to, whether our existing business activities are
permissible activities. Accordingly, you should not place undue reliance on the forward-looking
statements contained in this press release. These forward-looking statements speak only as of the
date on which the statements were made. CIT undertakes no obligation to update publicly or
otherwise revise any forward-looking statements, except where expressly required by law.

###
Contact:

Investor Relations Kenneth A. Executive Vice President, (212) 771-9650
Investor.Relations@cit.com
Brause Investor Relations
Media Relations C. Curtis Ritter Director of External (212) 461-7711
Communications and curt.ritter@cit.com
Media Relations

Individuals interested in receiving future updates on CIT via e-mail can register at
http://newsalerts.cit.com

8

CIT GROUP INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED INCOME STATEMENTS
(dollars in millions, except per share data)

Quarters Ended
March 31, December 31, March 31,
2009 2008 2008
Interest Income
Interest and fees on loans $ 628.6 $ 803.0 $ 941.8
Interest and dividends on investments 11.0 21.2 47.7
Total interest income 639.6 824.2 989.5
Interest Expense
Interest on deposits (24.4) (24.8) (30.1)
Interest on short-term borrowings - - (36.9)
Interest on long-term borrowings (632.7) (769.8) (765.1)
Total interest expense (657.1) (794.6) (832.1)
Net Interest Revenue (17.5) 29.6 157.4
Provision for Credit Losses (535.4) (440.0) (246.7)
Net interest revenue, after credit provision (552.9) (410.4) (89.3)
Other Income
Rental income on operating leases 475.2 474.0 506.7
Other (1) 92.2 122.4 61.0
Total other income 567.4 596.4 567.7
Other Expenses
Depreciation on operating lease equipment (282.0) (285.8) (294.6)
Other (2) (162.6) (201.1) (520.9)
Total other expenses (444.6) (486.9) (815.5)
(Loss) from continuing operations before provision for income taxes (430.1) (300.9) (337.1)
(Provision) benefit for Income taxes (8.0) 162.9 96.4
(Loss) from continuing operations (438.1) (138.0) (240.7)

Discontinued Operation
Income (loss) from discontinued operation, pre-tax - 29.2 (195.8)
Benefit (provision) for income taxes - (86.2) 197.8
Income (loss) from discontinued operation - (57.0) 2.0

(Loss) before preferred stock dividends (438.1) (195.0) (238.7)
Preferred stock dividends and accretion (65.9) (20.4) (7.5)
Net (loss) attributable to common stockholders (504.0) (215.4) (246.2)
Net (loss) income attributable to noncontrolling interests, after tax (formerly
Minority Interest) (0.5) 10.1 (11.0)
Net (loss) attributable to common stockholders $ (504.5) $ (205.3) $ (257.2)

Basic Earnings Per Common Share
(Loss) from continuing operations $ (1.30) $ (0.50) $ (1.36)
Net (loss) $ (1.30) $ (0.69) $ (1.35)
Diluted Earnings Per Common Share
(Loss) from continuing operations $ (1.30) $ (0.50) $ (1.36)
Net (loss) $ (1.30) $ (0.69) $ (1.35)

Average number of common shares - basic (thousands) 388,940 294,679 191,091
Average number of common shares - diluted (thousands) 388,940 294,679 191,091

(1) Other Income - Other
Fees and commissions $ 29.6 $ 25.8 $ 72.6
Factoring commissions 44.1 48.8 49.2
Gains on loan sales and syndication fees 4.7 0.6 4.7
Gains on securitizations - - 4.1
Gains on sales of leasing equipment 14.1 42.8 47.8
Investment gains (losses) (0.3) 0.2 0.1
Gain on portfolio dispositions - 4.2 -
Valuation allowances for receivables held for sale - - (117.5)
Total Other Income - Other $ 92.2 $ 122.4 $ 61.0
Fees and other income is comprised of asset management and service fees, including securitization-related servicing fees and accretion net of
impairment charge, advisory and agent fees, as well as income from joint ventures.
(2) Other Expenses - Other
Salaries and general operating expenses $ (281.7) $ (352.5) $ (303.7)
Provision for severance and facilities exit activities (20.3) (52.0) (69.1)
Goodwill and intangible assets impairment charges - (12.7) -
Gain (loss) on debt and debt-related derivative extinguishments 139.4 216.1 (148.1)
Total Other Expenses - Other $ (162.6) $ (201.1) $ (520.9)

9

UNAUDITED CONSOLIDATED BALANCE SHEETS
(dollars in millions)

March 31, December 31,
2009 2008

Assets
Cash and due from banks / Deposits with banks $ 5,991.3 $ 8,365.8
Trading assets at fair value 180.3 139.4
Investments - retained interests in securitizations 192.0 229.4
Assets held for sale 188.9 156.1
Loans 50,859.1 53,126.6
Allowance for loan losses (1,316.3) (1,096.2)
Total Loans, net of allowances for loan losses 49,542.8 52,030.4
Operating lease equipment, net 13,175.2 12,706.4
Derivative counterparty receivables at fair value 1,173.7 1,489.5
Goodwill and intangible assets, net 694.7 698.6
Other assets 4,518.1 4,589.1
Assets of discontinued operation - 44.2
Total Assets $ 75,657.0 $ 80,448.9

Liabilities
Deposits $ 3,024.9 $ 2,626.8
Trading liabilities at fair value 160.8 127.4
Credit balances of factoring clients 2,702.3 3,049.9
Derivative counterparty payables at fair value 309.5 433.7
Other liabilities 2,323.1 2,291.3
Long-term borrowings
Bank credit facilites 5,200.0 5,200.0
Secured borrowings 18,731.2 19,084.4
Senior unsecured notes 33,451.8 37,367.4
Junior subordinated and convertible notes 2,098.9 2,098.9
Total Long-term borrowings 59,481.9 63,750.7
Total Liabilities 68,002.5 72,279.8

Equity
Stockholders' Equity
Preferred Stock - Series A 350.0 350.0
Preferred Stock - Series B 150.0 150.0
Preferred Stock - Series C 575.0 575.0
Preferred Stock - Series D 1,928.0 1,911.3
Common Stock 3.9 3.9
Paid-in Capital 11,464.5 11,469.6
Accumulated (Deficit) (6,318.5) (5,814.0)
Accumulated Other Comprehensive (Loss) (232.9) (205.6)
Treasury Stock, at Cost (310.3) (315.9)
Total Common Stockholders' Equity 4,606.7 5,138.0
Total Stockholders' Equity 7,609.7 8,124.3
Noncontrolling interests (formerly Minority Interest) 44.8 44.8
Total Equity 7,654.5 8,169.1
Total Liabilities and Equity $ 75,657.0 $ 80,448.9

OTHER ASSETS
Receivables from Counterparties $ 1,574.4 $ 1,492.6
Deposits on Commercial Aerospace Flight Equipment 498.8 624.3
Accrued Interest and Dividends 390.3 480.8
Equity and Debt Investments 416.7 486.6
Investments in and Receivables from Non-consolidated Subsidiaries 223.7 257.1
Repossessed Assets and Off-lease Equipment 37.2 21.3
Furniture and Fixtures 160.7 168.3
Prepaid Expenses 59.0 64.1
Miscellaneous Receivables and Other Assets 1,157.3 994.0
Total Other Assets $ 4,518.1 $ 4,589.1

10

OWNED AND SECURITIZED ASSET COMPOSITION

2009 2008 2008
Corporate Finance
Finance receivables $ 20,025.9 $ 20,768.8 $ 21,222.0
Operating lease equipment, net 252.8 263.4 364.6
Financing and leasing assets held for sale 22.8 21.3 1,840.0
Owned assets 20,301.5 21,053.5 23,426.6
Finance receivables securitized off-balance sheet 684.6 785.3 1,347.7
Owned and securitized assets 20,986.1 21,838.8 24,774.3
Finance receivables 2,536.0 2,647.6 2,620.1
Operating lease equipment, net 12,026.2 11,484.5 10,740.8
Financing and leasing assets held for sale 21.9 69.7 500.5
Owned assets 14,584.1 14,201.8 13,861.4
Trade Finance
Finance receivables/owned assets 5,432.2 6,038.0 7,003.9
Vendor Finance
Finance receivables 10,734.2 11,199.6 10,824.8
Operating lease equipment, net 896.2 958.5 1,098.3
Financing and leasing assets held for sale - - 198.7
Owned assets 11,630.4 12,158.1 12,121.8
Finance receivables securitized off-balance sheet 643.5 783.5 3,954.0
Owned and securitized assets 12,273.9 12,941.6 16,075.8
Consumer
Finance receivables - student lending 11,894.0 12,173.3 12,561.9
Finance receivables - other 236.8 299.3 557.0
Financing and leasing assets held for sale 144.2 65.1 76.5
Owned assets 12,275.0 12,537.7 13,195.4
Other
Equity investments 219.1 265.8 233.6

Consolidated Totals
Other financing and leasing assets held for sale 188.9 156.1 2,615.7
Financing and leasing assets excluding equity
investments 64,223.2 65,989.1 69,609.1
Equity investments 219.1 265.8 233.6
Owned assets 64,442.3 66,254.9 69,842.7
Finance receivables securitized off-balance sheet 1,328.1 1,568.8 5,301.7
Owned and securitized assets $ 65,770.4 $ 67,823.7 $ 75,144.4

11

SEGMENT DATA
Quarters Ended
2009 2008 2008
Corporate Finance
Interest income $ 255.6 $ 341.1 $ 422.6
Interest expense (150.0) (207.0) (254.4)
Provision for credit losses (393.4) (307.1) (83.9)
Other income (0.3) (37.3) (53.7)
Other expenses (106.8) (99.9) (114.2)
(Loss) Before Taxes & Other Items (390.9) (305.7) (76.5)
Benefit for Income Taxes & Other AT Items 150.6 125.1 29.2
Net (Loss) $ (240.3) $ (180.6) $ (47.3)
New Business Volume $ 341.4 $ 834.2 $ 2,161.2

Interest income $ 44.6 $ 44.4 $ 49.7
Provision for credit losses 1.6 23.8 0.4
Other income 8.7 34.8 39.7
Other expenses (41.1) (32.0) (40.6)
Income Before Taxes & Other Items 51.9 99.6 93.5
Provision for Income Taxes & Other AT Items (5.9) (17.9) (9.0)
Net Income $ 46.0 $ 81.7 $ 84.5
New Business Volume $ 630.4 $ 721.8 $ 710.1

Trade Finance
Interest income $ 31.4 $ 48.2 $ 59.2
Rental income on operating leases - - -
Depreciation on operating lease equipment - - -
Other expenses (36.4) (34.5) (39.2)
Income Before Taxes & Other Items 16.7 50.8 53.0
Provision for Income Taxes & Other AT Items (7.6) (20.3) (20.1)
Net Income $ 9.1 $ 30.5 $ 32.9
Factoring volume $ 8,346.0 $ 10,387.3 $ 10,590.1

Vendor Finance
Interest income $ 230.0 $ 240.1 $ 273.5
Other expenses (87.4) (127.1) (104.0)
Goodwill and intangible impairment charges - (12.7) -
Income (Loss) Before Taxes & Other Items (41.5) (49.9) 9.6
Benefit (Provision) for Income Taxes & Other AT Items 16.2 40.0 (3.0)
Net Income (Loss) $ (25.3) $ (9.9) $ 6.6
New Business Volume $ 1,438.6 $ 1,784.9 $ 2,240.8

Consumer
Interest income $ 67.4 $ 131.3 $ 161.3
Rental income on operating leases - - -
Other income (3.6) 9.4 (8.4)
Depreciation on operating lease equipment - - -
Other expenses (22.6) (18.3) (21.3)
Goodwill and intangible impairment charges - - -
(Loss) Before Taxes & Other Items (73.5) (95.8) (152.1)
Benefit for Income Taxes & Other AT Items 27.0 30.0 56.9
Net (Loss) $ (46.5) $ (65.8) $ (95.2)
New Business Volume $ 0.6 $ 1.5 $ 1,210.0

Corporate & Other
Interest income $ 10.6 $ 19.1 $ 23.2
Provision for credit losses (6.2) (24.7) 24.6
Rental income on operating leases (0.5) (0.6) (0.4)
Depreciation on operating lease equipment 0.3 0.1 0.2
Other expenses (7.7) (92.7) (53.5)
Gain/(loss) on debt and debt-related derivative extinquishments 139.4 216.1 (148.1)
Income (Loss) Before Taxes & Other Items 7.2 0.1 (264.6)
Benefit (Provision) for Income Taxes & Other AT Items (188.8) 16.1 31.4
Net Income (Loss), Before Preferred Dividends $ (181.6) $ 16.2 $ (233.2)

12

CREDIT METRICS

Quarters Ended
March 31, 2009 December 31, 2008 March 31, 2008

Net Credit Losses as a Percentage of Average Finance Receivables
Corporate Finance $ 211.1 4.11% $ 71.8 1.35% $ 39.6 0.71%
Transportation Finance 1.4 0.21% - - (0.6) -0.09%
Trade Finance 22.3 1.62% 23.5 1.39% 8.9 0.51%
Vendor Finance 41.5 1.51% 51.8 1.97% 19.4 0.73%
Commercial Segments 276.3 2.78% 147.1 1.42% 67.3 0.63%
Consumer 36.7 1.19% 31.1 0.99% 30.8 0.97%
Total $ 313.0 2.41% $ 178.2 1.32% $ 98.1 0.71%

Non-accruing Loans as a Percentage of Finance Receivables March 31, 2009 December 31, 2008 March 31, 2008
Corporate Finance $ 1,173.3 5.86% $ 946.6 4.56% $ 433.0 2.04%
Transportation Finance 3.6 0.14% 24.3 0.92% 7.9 0.30%
Trade Finance 92.5 1.70% 81.5 1.35% 44.4 0.63%
Vendor Finance 231.4 2.15% 168.1 1.50% 203.5 1.88%
Commercial Segments 1,500.8 3.88% 1,220.5 3.00% 688.8 1.65%
Consumer 190.9 1.57% 194.1 1.56% 87.7 0.67%
Total $ 1,691.7 3.33% $ 1,414.6 2.66% $ 776.5 1.42%

Reserve for Credit Losses (Continuing Operations)
Reserve for credit losses as a percentage of finance receivables 2.59% 2.06% 1.30%
Reserve for credit losses as a percentage of non-accrual loans 77.8% 77.5% 92.1%

Reserve for credit losses (excluding specific reserves) as a percentage of
finance receivables, excluding guaranteed student loans 1.90% 1.48% 1.28%

Average Balances(1) and Associated Income and Expense (dollars in millions)
Quarters Ended
March 31, 2009 December 31, 2008 March 31, 2008
Average Average Average
Balance Balance Balance
Assets Rate Rate Rate
Deposits with banks $ 5,377.9 0.7% $ 5,403.3 1.3% $ 5,301.7 2.3%
Investments(2) 480.0 1.4% 461.1 3.3% 398.6 -
Loans (including held for sale assets)(3) 52,063.5 5.1% 54,013.6 6.4% 56,345.7 7.2%
Total interest earning assets / interest income 57,921.4 4.6% 59,878.0 5.8% 62,046.0 6.8%
Operating lease equipment, net(4) 12,884.3 6.0% 12,611.9 6.0% 12,541.4 6.7%
Other 7,107.2 6,841.5 16,158.8
Total average assets $ 77,912.9 $ 79,331.4 $ 90,746.2
Liabilities
Deposits $ 2,346.4 4.2% $ 2,055.7 4.8% $ 2,328.5 5.2%
Short-term borrowings (commercial paper) - - - - 2,346.5 6.3%
Long-term borrowings 61,426.5 4.1% 64,150.0 4.8% 66,228.4 4.6%
Total interest-bearing liabilities 63,772.9 4.1% 66,205.7 4.8% 70,903.4 4.7%
Credit balances of factoring clients 2,729.1 3,449.0 3,960.2
Other 11,410.9 9,676.7 15,882.6
Total Average Liabilities and Equity $ 77,912.9 $ 79,331.4 $ 90,746.2
1 Average balances presented are preliminary and derived based on month end balances during the year.
Investments are included in “Other Assets” on the Consolidated Balance Sheets and do not include ‘retained interests in securitizations’ as revenues from these are
2 part of “other income”.
3 The rate presented is calculated based on the average balance of the loans and leases net of average credit balances for factoring clients.
4 Operating lease rate is derived from the sum of rental income net of depreciation.

13

RATIOS AND OTHER DATA
(dollars in millions, except per share data)

Quarters Ended
Continuing Operations 2009 2008 2008
Profitability
Net finance revenue(1) as a percentage of AEA 1.13% 1.38% 2.28%
Net finance revenue(1) after provision as a percentage of AEA -2.31% -1.41% 0.76%
Salaries and general operating expenses as a percentage of average owned
and securitized assets(2) 1.77% 2.14% 1.73%
Efficiency ratio(3) 105.2% 103.6% 70.5%
Return on average common stockholders' equity -39.2% -12.5% -15.9%
Return on AEA -3.24% -0.94% -1.60%
Return on average owned and securitized assets -3.17% -0.90% -1.47%
See quot;Non-GAAP Disclosuresquot; for additional information regarding profitability ratio and metric comparisons.
(1) Net finance revenue is the sum of net interest revenue plus rentals on operating leases less depreciation on operating lease equipment.
(2) The salaries and general operating expenses do not include the provision for severance and facility exiting activities.
(3) The efficiency ratio is the ratio of salaries and general operating expenses (excluding the provision for severance and facility exiting activities) to total
net revenues (before provision for credit losses). The ratio in excess of 100% reflects reduced revenues.

Average Balances
Average Finance Receivables (AFR) $ 52,028.9 $ 53,891.7 $ 55,441.4
Average Earning Assets (AEA) 62,226.7 63,250.4 64,918.6
Average Owned and Securitized Assets 63,656.6 65,978.7 70,378.4
Average Operating Leases (AOL) 12,884.3 12,611.9 12,541.4
Average Common Stockholders' Equity (excluding certain OCI
components) 5,147.1 4,753.8 6,507.3

Consolidated 2009 2008 2008
Capital and Leverage
9.3% (1)
Tier I capital 9.4% N/A
13.0% (1)
Total capital 13.1% N/A
Total tangible capital to managed assets 13.9% 14.3% 9.4%
Tangible common equity (TCE) ratio(2) 5.2% 5.6% 5.3%
$10.39 (3)
Tangible book value per common share $11.78 ** $26.63
$12.18 (3)
Book value per common share $13.57 ** $32.68
Outstanding common shares (in millions) 388.9 388.7 191.6
(1) Preliminary
(2) TCE equals total common stockholders' equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
(3) Excludes the potential dilution related to a warrant to purchase approximately 88.7 million common shares at an initial price of $3.94.

14

Non-GAAP Disclosures
(dollars in millions, except per share amounts)

2009 2008 2008
Financing and leasing assets owned and securitized (1):
Financing and leasing assets held for sale 188.9 156.1 2,615.7
Equity and venture capital investments (included in other assets) 219.1 265.8 233.6
Total financing and leasing portfolio assets 64,442.3 66,254.9 69,842.7
Securitized assets 1,328.1 1,568.8 5,301.7
Financing and leasing assets owned and securitized: $ 65,770.4 $ 67,823.7 $ 75,144.4

Earning assets (2):
Total financing and leasing portfolio assets $ 64,442.3 $ 66,254.9 $ 69,842.7
Credit balances of factoring clients (2,702.3) (3,049.9) (3,572.9)
Earning assets $ 61,740.0 $ 63,205.0 $ 66,269.8

Tangible capital (3):

Total common equity $ 4,606.7 $ 5,138.0 $ 6,143.6
Other comprehensive income - cash flow hedges 91.2 136.9 122.0
Other comprehensive income - available for sale securities 37.9 1.3 (3.8)
Goodwill and intangible assets (694.7) (698.6) (1,159.5)
Tangible common capital 4,041.1 4,577.6 5,102.3
Junior subordinated notes and convertible debt 2,098.9 2,098.9 1,440.0
Preferred stock 3,003.0 2,986.3 500.0

Tangible capital $ 9,143.0 $ 9,662.8 $ 7,042.3

Quarters Ended
Total net revenues(4) 2009 2008 2008
Interest income $ 639.6 $ 824.2 $ 989.5
Finance revenue 1,114.8 1,298.2 1,496.2
Depreciation on operating lease equitpment (282.0) (285.8) (294.6)
Net finance revenue 175.7 217.8 369.5
Other income 92.2 122.4 61.0
Total net revenues $ 267.9 $ 340.2 $ 430.5

Quarters Ended
Earnings from continuing operations, net of preferred dividends (5) 2009 EPS 2008 EPS 2008 EPS
Net income (loss) from continuing operations, before preferred stock dividends $ (438.6) $ (1.13) $ (127.9) $ (0.43) $ (251.7) $ (1.32)
Preferred stock dividends(5) (65.9) (0.17) (20.4) (0.07) (7.5) (0.04)
Income (loss) from continuing operations, net of preferred dividends $ (504.5) $ (1.30) $ (148.3) $ (0.50) $ (259.2) $ (1.36)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to trends in the business to investors and, in certain cases, to present
financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from,
or inconsistent with, non-GAAP financial measures used by other companies.

1) Managed assets are utilized in certain credit and expense ratios. Securitized assets are included in managed assets because CIT retains certain credit risk and the servicing related to assets that
are funded through securitizations.
2) Earning assets are utilized in certain revenue and earnings ratios. Earning assets are net of credit balances of factoring clients. This net amount, which corresponds to amounts funded, is a
basis for revenues earned.

3)Tangible capital is utilized in leverage ratios, and is consistent with certain rating agency measurements. Other comprehensive income items are excluded from the calculation, as these
amounts are not necessarily indicative of amounts which will be realized.
4) Total net revenues are the combination of net finance revenues after depreciation on operating leases and other income.

5) Preferred dividends are presented as a reduction to net income (loss) from continuing operations to reflect the ongoing capital commitment associated with these shares.

15

Q1 2009 Earning Report of Cit Group, Inc.

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (11)

Destaque

Destaque (7)

Semelhante a Q1 2009 Earning Report of Cit Group, Inc.

Semelhante a Q1 2009 Earning Report of Cit Group, Inc. (20)

Mais de earningreport earningreport

Mais de earningreport earningreport (20)

Último

Último (20)

Q1 2009 Earning Report of Cit Group, Inc.